A Dutch court has ordered the suspension of the CEO Nexperia, an important chip manufacturer for the automotive industry confirmed and formal investigations ordered against the company. The Enterprise Chamber of the Amsterdam Court of Appeal announced that agreements with the Dutch Ministry of Economic Affairs had not been adhered to.
Nexperia, based in Nijmegen, is owned by the Chinese company Wingtech Technology and produces chips for the global Auto industry are of central importance. The US government put Wingtech on a list of companies suspected of endangering US interests and imposed export controls. According to court documents, she called for the removal of Nexperia CEO and Wingtech founder Zhang Xuezheng.
The Dutch government had national security concerns
At the end of September, the Dutch government took effective control of Nexperia, citing national security concerns and “significant deficiencies in corporate governance.” The Enterprise Chamber suspended Zhang amid allegations of mismanagement.
As a result, the authorities in Beijing blocked it at the beginning of October Export of Nexperia chips from China. This ban was lifted in mid-November as part of a trade agreement between the USA and China. The Dutch government gave up control of Nexperia a short time later – as a sign of goodwill, as it explained. The Nexperia branches in the Netherlands and China blamed each other for the temporary delivery stop.
The court said that the situation at Nexperia requires, first and foremost, calm so that the company has the opportunity to “restore its internal relationships, its production chain and supplies to customers.” It is not yet possible to say how long the investigation will take. More than half a year is possible.
Nexperia says it supports the investigation. Wingtech, on the other hand, demanded in January that no investigation be carried out. CEO Zhang, as a businessman, was only trying to lead Nexperia through turbulent geopolitical waters.
Correction note: Nexperia’s information has been updated in the last paragraph. It was also corrected that Wingtech was waiving the investigation.
